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A New Financial Culture of Stability Foreseen by Germany which Forges Ahead on Reforming the Eurozone

By Andis Kaulins

Germany Forges Ahead on Reforming the Euro - SPIEGEL ONLINE - News - International reports inter alia:

"Berlin means business. In addition to pushing for increased regulation of hedge funds and of the financial markets, Chancellor Angela Merkel's government has drafted a list of proposals to revamp the European common currency. From suspending voting rights to national bankruptcy proceedings, the plan is far-reaching....

According to the document, Germany would like to see annual budgets in euro-zone countries undergo a "strict and independent check." Berlin proposes that the job be taken over by the European Central Bank or by a collection of economic research institutes. In addition, the draft proposes stricter penalties for those countries that transgress euro-zone rules. "Euro-zone member states that do not conform to deficit reduction rules should temporarily be disallowed from receiving structural funds," the draft reads. In extreme cases, that funding could be permanently eliminated."

Some of the changes may require amendments of the Lisbon Treaty.

Full post as published by LawPundit on May 20, 2010 (boomark / email).